Backblaze (BLZE) has surged 56.8% YTD, outperforming the Internet-Software industry and Computer and Technology sector. The cloud storage provider is capitalizing on the AI revolution and showing strong growth. Investors must decide whether to hold positions or wait for a better entry point given elevated share prices.

Backblaze’s B2 Cloud Storage business is thriving, with revenue expected to grow by 28-30% in Q3 2025. The company’s focus on enterprise scale, predictable pricing, and AI-aligned innovation is driving growth. Additionally, BLZE is enhancing its market position by integrating AI and cybersecurity into its platform, attracting a broader customer base.

Competition in the cloud storage market is intensifying, with Dropbox, Datadog, and Amazon vying for enterprise workloads. Backblaze stands out with its transparent pricing and open-cloud design, but faces challenges from larger rivals. BLZE’s valuation is high following the YTD rally, making it a hold for existing investors awaiting better entry points.

Despite the strong YTD rally, Backblaze demonstrates operational strength and growth potential in B2 Cloud Storage and AI-driven workloads. The stock’s current levels already reflect optimism, but ongoing execution strength and market trends support maintaining exposure. Prudent investors may hold positions, while new investors should wait for better entry points as valuations stabilize.

Read more at Nasdaq.: 3 Reasons to Hold BLZE Stock Now Despite a 56.8% Year-to-Date Rally